The company sells only cars and trucks.

Let c = revenue from car sales in 1996

Let t = revenue from truck sales in 1996

Equating the total revenue in 1997 with the individual revenue from selling cars and trucks in 1997,

c(0.89) + t(1.07) = (c+t) (1.01)

Dividing throughout by t,

(c/t) (0.89) + 1.07 = (c/t + 1) (1.01)

=> (c/t) (0.12) = 0.06

=> (c/t) = 1/2

Option (A).

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